KIRBY CORP Leases Disclosure
(6) Leases
The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocating the consideration between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels for which the Company estimates approximately 70% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).
Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):
2026 |
|
$ |
54,278 |
|
2027 |
|
|
44,246 |
|
2028 |
|
|
33,245 |
|
2029 |
|
|
18,855 |
|
2030 |
|
|
14,522 |
|
Thereafter |
|
|
97,566 |
|
Total lease payments |
|
|
262,712 |
|
Less: imputed interest |
|
|
(47,092 |
) |
Operating lease liabilities |
|
$ |
215,620 |
|
The following table summarizes lease costs (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
50,769 |
|
|
$ |
45,844 |
|
|
$ |
42,821 |
|
Variable lease cost |
|
|
302 |
|
|
|
1,936 |
|
|
|
2,376 |
|
Short-term lease cost |
|
|
39,478 |
|
|
|
38,991 |
|
|
|
30,005 |
|
Sublease income |
|
|
(3,681 |
) |
|
|
(3,396 |
) |
|
|
(3,223 |
) |
Total lease cost |
|
$ |
86,868 |
|
|
$ |
83,375 |
|
|
$ |
71,979 |
|
The following table summarizes other supplemental information about the Company’s operating leases:
|
|
December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Weighted average discount rate |
|
|
4.7 |
% |
|
|
4.6 |
% |
|
|
4.4 |
% |
Weighted average remaining lease term |
|
8 years |
|
|
8 years |
|
|
9 years |
|
|||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 22, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.